Local Government Budget Framework Paper Vote: 550 Rukungiri District Structure of Budget Framework Paper Foreword Executive Summary A: Revenue Performance and Plans B: Summary of Department Performance and Plans by Workplan C: Draft Annual Workplan Outputs for 2015/16 Page 1 Local Government Budget Framework Paper Vote: 550 Rukungiri District Foreword The budget Framework Paper ( BFP) 2015/2016 provides detailed information on the financial situation of the District and perfomance of various sectors in delivering the mandated services. The BFP has been prepared through wider consultations with stakeholders and it will serve as a background to the 2015/2016 Budget. A budget conference was held on 6/1/2015 and views of various stakeholders have been incorporated in this BFP.Their views have formed the basis of producing this document and agreeing on the priorities of this Council for coming Financial Year. The District key priority areas of intervention in the Financial Year 2015/16 are expected to be promotion of universal primary education,improving the health of the communities through primary health care, promoting food security and increased household incomes through increased agricultural productivity, increasing accessibility to markets through improved road network, provision of clean and safe water for humans and livestock, strengthening good governance, transparency and accountability through monitoring, supervision and coordination. On behalf of Rukungiri District Local Government and on my own behalf, I wish to extend my sincere gratitude to Central Government and other development partners for their continued support to Rukungiri District which has enabled us to implement development programs. My special tribute goes to Heads of Department and Members of Budget Desk for their inputs into the preparation of this document. Finally I have the honour to present the 2015/2016 BFP to Government of Uganda, political leaders and stakeholders in the name of the people of Rukungiri District. I say this " For God and my country". Byabakama Charles Kwebangira DISTRICT CHAIRPERSON Page 2 Local Government Budget Framework Paper Vote: 550 Rukungiri District Executive Summary Revenue Performance and Plans 2014/15 2015/16 Approved Budget Receipts by End Proposed Budget September UShs 000's 1. Locally Raised Revenues 476,665 109,118 470,344 2a. Discretionary Government Transfers 2,394,578 517,436 2,394,578 2b. Conditional Government Transfers 21,607,373 5,025,250 21,607,373 2c. Other Government Transfers 2,078,583 1,084,113 1,097,925 3. Local Development Grant 454,688 113,672 454,688 4. Donor Funding 656,015 40,035 0 Total Revenues 27,667,902 6,889,624 26,024,908 Revenue Performance in the first quarter of 2014/15 The district received Shs. 6,889,624,000 out of the Budgeted amount of shs.27,667,902,000 representing 25% . The Locally raised revenue performance as low as 23% of the projected. Among the reasons for this performance include: animal and crop diseases that affected market revenues, collection period is not yet due its collected in the first month quarter of the calendar year. The performance was also affected by the timing of the revenue as some depend on calender year like lincences and operational permits. The poor performance shown in donor funding (6%) resulted from late approval and disbursement of grant C by SDS. Discretionary Government transfers performed at 22% Conditional Grant transfers performed at 23%, Other Government transfers performed at 52% ,Local Government Grants performed at 25% . Planned Revenues for 2015/16 District Budget Framework Paper for Financial Year 2015/2016 was prepared in line with the current financial management system introduced by Ministry of Finance Planning and Economic Development. The District expects a total of shs. 26,024,908,000 of which shs. 21,607,373,000 is Conditional Government Transfers ,shs.2,394,578,000 is discretionary transfers and shs. 454,688 ,000 is Local Development Grant. The District is expected to generate shs. 476,665,000 in local raised revenue. Other Government transfers are shs. 1,097,925,000 which include( MoES UNEB shs.12,768,000,MoH shs.450,000,000, UWA shs. 50,000,000, URF shs. 585,157,000 ). The donor funding under USAID has made all USAID funded organizations integrate their workplans as a component of the District Workplan /Budget . The development partners off budget support contributions are as follows; ACCORD/SUNRISE have not committed themselves on the amount to be given to the district. Overall Central Government and Local revenue constitutes 98 and 2 percent respectively of the expected district revenues. Expenditure Performance and Plans 2014/15 2015/16 Approved Budget Actual Proposed Budget Expenditure by UShs 000's end Sept 1a Administration 1,466,341 229,461 1,058,574 2 Finance 441,529 68,559 440,651 3 Statutory Bodies 662,533 79,206 665,504 4 Production and Marketing 764,967 43,307 726,794 5 Health 3,983,507 854,266 3,833,273 6 Education 17,156,464 3,763,635 17,092,041 7a Roads and Engineering 1,204,635 171,944 1,113,370 7b Water 385,944 45,729 378,129 8 Natural Resources 169,031 28,425 164,886 9 Community Based Services 466,249 88,769 345,156 10 Planning 910,433 788,344 142,911 11 Internal Audit 56,268 12,992 63,567 Page 3 Local Government Budget Framework Paper Vote: 550 Rukungiri District Executive Summary 2014/15 2015/16 Approved Budget Actual Proposed Budget Expenditure by UShs 000's end Sept Grand Total 27,667,902 6,174,637 26,024,856 Wage Rec't: 17,303,537 3,845,158 17,303,538 Non Wage Rec't: 7,482,607 2,096,211 6,707,568 Domestic Dev't 2,225,744 197,425 2,013,751 Donor Dev't 656,015 35,843 0 Expenditure Performance in the first quarter of 2014/15 The expenditure up to the First quarter was shs. 6,174,728,000 of which 3,845,158,000 was wage. Salaries for the three months have been paid promptly through STP . Shs. 2,096,302,000 was Non Wage, shs. 197,425,000 is Domestic development and shs. 35,843,000 is donor development. We had the delay in the procurement process which has pushed most of the development expenditure to Second quarter as the contracts were awarded late in the quarter. For Financial Yar 2015/2016 we intend to start the procurement process early such that we move on schedule as per the guidelines from Ministry of Finance. Planned Expenditures for 2015/16 The District plans to spend Shs. 26,024,856,000 compared to shs. 27,667,902,000 in 2014/15 representing a decrease of 6 percent. The decrease is as a result of the uncertanity of the donor funding. The projected Donor support from SDS has been phased into installments and we are still in balance for the next phase funding. The wage component stands at shs.17,303,538,000 which is 66.5% of the current projected resource. Non wage recurrent, shs. 6,707,568,000 and shs.2,013,751,000 is Domestic development . The expenditure allocation per sector in relation to resource envelope is as indicated below: Administration allocation is Shs 1,058,574,000 ,Finance is Shs. 440,651,000, Statutory Boards is Shs. 665,504,000, Production is Shs. 726,794,000 , Health is Shs. 3,833,273,000 , Education is 17,092,041,000 , Roads and Engineering is shs. 1,113,370,000 , Water is shs.378,129,000 , Natural Resource is shs. 164,886,000 , Community development is shs.345,156,000 , Planning Unit is shs. 142,911,000 and Internal Audit is shs. 63,567,000 . The allocation to most of the departments decreased mainly due to planned activities conducted like the National Population and Housing Census, monitoring of learning achievement, wage increments for the case of teachers in 2014/15and non inclusion of unspent balances in 2013/14. For the case of Production and Marketing the allocation reduced due to changes in NAADs implementation Policy and even the funds that are in the budget has been recalled to be spent at NAADS Secretariat. The funds reflected as NAADS will also be spent at Secretariat due to the plocy shift Medium Term Expenditure Plans Key priority areas of intervention in the medium term are expected to be promotion of Universal Primary Education(UPE), improving the health of the communities through Primary Health Care, improvement on Maternal Child Health (MCH), promoting food security and increased household incomes through increased agricultural productivity,value addition, increasing accessibility to markets through improved road network, provision of clean and safe water for humans and livestock, strengthening good governance, transparency and Accountability through monitoring, supervision and coordination. The District plans to spend Shs. 26,024,856,000 and expenditure will be as follows: The wage component stands at shs.17,303,538,000 which is 66.5% of the current and projected resource for the District. The medium Term expenditure is shared within sectors as follows: Administration : 5.3 % of the budget ,Finance ; 1.5 % of the budget ,Statutory Boards ; 2.3 % of the budget , Production ; 2.7 % of the budget, Health ;14.3% of the budget , Education; 62% of the budget, Roads and Engineering ; 4.4 % of the budget, Water; 1.4% of the budget, Page 4 Local Government Budget Framework Paper Vote: 550 Rukungiri District Executive Summary Natural Resources 1 % of the budget , Community development ; 1.7 % of the budget Planning Unit ; 3.2% and Internal Audit will take 0.2% of the budget. Challenges in Implementation Funds are not released as planned especially the capital development which in turn affect payment of already signed contracts.